# Ocado Group (OCDO.LSE)

Canonical: https://gigainvestors.com/s/OCDO.LSE

Analysis as of: 2026-10-16T07:38:50.433Z. Financial observations: FY2007–FY2025.

Listing currency: GBX. Reporting currency: GBP.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: GBX 300.00 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 1 revenue decline in the last 10 years (informational)

- more than 2 net loss years

- negative average operating margin

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 8

- Operating margin variation: 0.85×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.02×

- FY2017: 0.00×

- FY2018: -0.02×

- FY2019: -0.10×

- FY2020: -0.07×

- FY2021: -0.11×

- FY2022: -0.18×

- FY2023: -0.12×

- FY2024: -0.28×

- FY2025: -0.14×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 20.7pp below the typical margin (limit 4pp)

- ROIC, median of available years: -11.3%

- ROIC, second-lowest year: -15.6%

- Typical minus recent gross margin: 20.7 pp

- Typical gross margin (annual median): 31.2%

- Recent gross margin (lower of latest and 3-year median): 10.5%

- Years with nonpositive capital: 0

- Capital spending / revenue: 17.4%

- ROIC including acquisitions, ten-year median: -12.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 5.2%

- FY2017: 0.8%

- FY2018: -5.0%

- FY2019: -15.6%

- FY2020: -13.0%

- FY2021: -11.7%

- FY2022: -15.9%

- FY2023: -11.0%

- FY2024: -13.4%

- FY2025: -6.1%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: GBP -1.5B

- Net income, five-year total: GBP -924M

- Return on incremental invested capital: -14.8%

- Working capital / revenue, annual change: -0.7 pp

- Working capital / revenue, change between three-year averages: -4.4 pp

- Working capital / revenue, final three-year average: -4.7%

Chart: Owner earnings · five years; fiscal year observations.

- FY2021: GBP -608M

- FY2022: GBP -897M

- FY2023: GBP -314M

- FY2024: GBP -270M

- FY2025: GBP 559M

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 0.8% vs -11.0%

- Per-share earnings: 0.02 to -0.38 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- five-year and ten-year diluted share growth both above threshold

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 2.8%

- Ordinary dilution, 5-year annual growth: 2.3%

- Market cap gain: GBP -128M

- Cumulative retained earnings: GBP -588M

- Diluted shares, 10-year annual growth: 2.8%

- Diluted shares, 5-year annual growth: 2.3%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: GBP -0.40

- Per-share value, starting three-year median: GBP 0.02

- Per-share value, ending three-year median: GBP -0.38

- Buyback history: 0 years

- Debt-funded buybacks: No

- Acquisition spending: GBP 613M

- Cumulative net income, 10 years: GBP -1.3B

- ROIC, first three-year median: 0.8%

- ROIC, last three-year median: -11.0%

Chart: Earnings per share; fiscal year observations.

- FY2016: GBP 0.02

- FY2017: GBP -0.01

- FY2018: GBP -0.07

- FY2019: GBP -0.31

- FY2020: GBP -0.18

- FY2021: GBP -0.30

- FY2022: GBP -0.57

- FY2023: GBP -0.38

- FY2024: GBP -0.41

- FY2025: GBP 0.49

### accounting: pass

- Sloan accruals: 0.8%

- Receivables to sales index (DSRI): 0.67×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 10.5%

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.92×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.43×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -12.1%

- FY2017: -13.9%

- FY2018: -12.8%

- FY2019: -12.3%

- FY2020: -9.3%

- FY2021: -4.9%

- FY2022: -10.0%

- FY2023: -8.9%

- FY2024: -14.6%

- FY2025: 0.8%

## Holders

## Price story

Down 83% since Oct 2021 · "Ocado plans cost-cutting drive with up to 1,000 jobs at risk, says report" (uk.finance.yahoo.com, Feb 2026) · sales +13.8%

Story as of 2026-10-16T10:00:10.283Z; price observation 2026-10-15.

- 2025-09-12: Ocado suffers £400m slump as US supermarket questions warehouse tie-up ([uk.finance.yahoo.com](https://uk.finance.yahoo.com/news/ocado-suffers-400m-slump-us-115257239.html))

- 2026-02-09: Ocado plans cost-cutting drive with up to 1,000 jobs at risk, says report ([uk.finance.yahoo.com](https://uk.finance.yahoo.com/news/ocado-plans-cost-cutting-drive-100458952.html))

- 2026-07-21: Ocado rebounds after striking deal to build new robotic warehouse ([uk.finance.yahoo.com](https://uk.finance.yahoo.com/news/ocado-rebounds-striking-deal-build-162912103.html))

### Sales · FY2024–2025

sales +13.8%; source https://filings.xbrl.org/213800LO8F61YB8MBC74/2025-11-30/ESEF/GB/0/213800LO8F61YB8MBC74-2025-11-30/reports/213800LO8F61YB8MBC74-2025-11-30-T01.xhtml; observed 2026-03-10.

- FY2016: GBP 1.3B 

- FY2017: GBP 1.5B 

- FY2018: GBP 1.6B 

- FY2019: GBP 1.8B 

- FY2020: GBP 2.3B 

- FY2021: GBP 2.5B 

- FY2022: GBP 2.5B 

- FY2023: GBP 2.8B 

- FY2024: GBP 1.2B 

- FY2025: GBP 1.4B 

### Gross margin · FY2024

gross margin 10.5%; source https://filings.xbrl.org/213800LO8F61YB8MBC74/2025-11-30/ESEF/GB/0/213800LO8F61YB8MBC74-2025-11-30/reports/213800LO8F61YB8MBC74-2025-11-30-T01.xhtml; observed 2026-03-10.

- FY2016: 34.2% 

- FY2017: 34.0% 

- FY2018: 34.2% 

- FY2019: 26.4% 

- FY2020: 27.3% 

- FY2021: 28.3% 

- FY2022: 45.8% 

- FY2023: 2.5% 

- FY2024: 10.5% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in grocery stores; annual sales are GBP 1.4 billion.

- Source: https://filings.xbrl.org/213800LO8F61YB8MBC74/2025-11-30/ESEF/GB/0/213800LO8F61YB8MBC74-2025-11-30/reports/213800LO8F61YB8MBC74-2025-11-30-T01.xhtml (filed 2026-03-10); FY2025: revenue 1381700000; grossProfit 1404900000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); OCDO.LSE: Ocado Group plc, together with its subsidiaries, operates as an online grocery retailer in the United Kingdom and internationally. The company operates through Technology Solutions and Logistics segments. It provides end-to-end online retail and automated storage and retrieval solutions for general merchandise to corporate customers; and Ocado Intelligent Automation that provides automation solutions to sectors outside of grocery retail. The company also provides third-party logistics services through Ocado storage and retrieval system. Ocado Group plc was founded in 2000 and is headquartered in Hatfield, the United Kingdom.

### Why customers stay

It lost 11.3% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-10); FY2023: grossProfit / revenue = 2.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-10); FY2024: grossProfit / revenue = 10.5%.

- Source: https://filings.xbrl.org/213800LO8F61YB8MBC74/2025-11-30/ESEF/GB/0/213800LO8F61YB8MBC74-2025-11-30/reports/213800LO8F61YB8MBC74-2025-11-30-T01.xhtml (filed 2026-03-10); FY2025: grossProfit / revenue = 101.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-10); 10-year return on capital observations [[2016,0.052453131618291286],[2017,0.007806980656013457],[2018,-0.05007701421800948],[2019,-0.15553948832035594],[2020,-0.12951680273400418],[2021,-0.11674639289678135],[2022,-0.15916047184509236],[2023,-0.10950039519114772],[2024,-0.13413064312736445],[2025,-0.061327885597548516]]; median -0.11312339404396454. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid no dividends in 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-10); FY2016: growth capex 24300000; upkeep 61000000; owner earnings 12000000. Growth capex / owner earnings = 2.025.

- Source: https://filings.xbrl.org/213800LO8F61YB8MBC74/2025-11-30/ESEF/GB/0/213800LO8F61YB8MBC74-2025-11-30/reports/213800LO8F61YB8MBC74-2025-11-30-T01.xhtml (filed 2026-03-10); FY2025: growth capex 0; upkeep 218700000; owner earnings 559300000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-10); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,0],[2020,0],[2021,0],[2022,0],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 30% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); OCDO.LSE SharesStats.PercentInsiders = 29.993 percentage points; cache date 2026-10-16.

### What the price says

The price is 1.8 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-10); Closing price 300 GBX; reporting-to-trading FX 100; FY2025 annual sales per share 1.682152648930834; price multiple 1.7834291090685388. FY2025 cash earnings/share 0.6809205880777416. Closing-price date 2026-10-15.

## Monthly share-price history (GBX per share)

- 2016-10: GBX 275.00 per share

- 2016-11: GBX 270.00 per share

- 2016-12: GBX 264.10 per share

- 2017-01: GBX 249.40 per share

- 2017-02: GBX 249.00 per share

- 2017-03: GBX 241.00 per share

- 2017-04: GBX 251.00 per share

- 2017-05: GBX 314.70 per share

- 2017-06: GBX 289.40 per share

- 2017-07: GBX 301.10 per share

- 2017-08: GBX 309.80 per share

- 2017-09: GBX 292.70 per share

- 2017-10: GBX 287.70 per share

- 2017-11: GBX 352.60 per share

- 2017-12: GBX 397.10 per share

- 2018-01: GBX 503.60 per share

- 2018-02: GBX 553.20 per share

- 2018-03: GBX 530.80 per share

- 2018-04: GBX 538.40 per share

- 2018-05: GBX 898.00 per share

- 2018-06: GBX 1,027.50 per share

- 2018-07: GBX 1,106.00 per share

- 2018-08: GBX 1,072.50 per share

- 2018-09: GBX 899.20 per share

- 2018-10: GBX 855.20 per share

- 2018-11: GBX 831.20 per share

- 2018-12: GBX 790.00 per share

- 2019-01: GBX 991.20 per share

- 2019-02: GBX 1,034.50 per share

- 2019-03: GBX 1,370.50 per share

- 2019-04: GBX 1,362.50 per share

- 2019-05: GBX 1,194.50 per share

- 2019-06: GBX 1,167.00 per share

- 2019-07: GBX 1,245.50 per share

- 2019-08: GBX 1,295.50 per share

- 2019-09: GBX 1,322.50 per share

- 2019-10: GBX 1,329.00 per share

- 2019-11: GBX 1,325.00 per share

- 2019-12: GBX 1,279.00 per share

- 2020-01: GBX 1,223.50 per share

- 2020-02: GBX 1,064.00 per share

- 2020-03: GBX 1,220.00 per share

- 2020-04: GBX 1,604.50 per share

- 2020-05: GBX 2,191.00 per share

- 2020-06: GBX 2,028.00 per share

- 2020-07: GBX 2,053.00 per share

- 2020-08: GBX 2,497.00 per share

- 2020-09: GBX 2,744.00 per share

- 2020-10: GBX 2,276.00 per share

- 2020-11: GBX 2,207.00 per share

- 2020-12: GBX 2,287.00 per share

- 2021-01: GBX 2,777.00 per share

- 2021-02: GBX 2,200.00 per share

- 2021-03: GBX 2,035.00 per share

- 2021-04: GBX 2,097.00 per share

- 2021-05: GBX 1,889.00 per share

- 2021-06: GBX 2,003.00 per share

- 2021-07: GBX 1,855.00 per share

- 2021-08: GBX 2,013.00 per share

- 2021-09: GBX 1,662.50 per share

- 2021-10: GBX 1,803.00 per share

- 2021-11: GBX 1,795.50 per share

- 2021-12: GBX 1,678.00 per share

- 2022-01: GBX 1,504.00 per share

- 2022-02: GBX 1,373.00 per share

- 2022-03: GBX 1,171.00 per share

- 2022-04: GBX 924.00 per share

- 2022-05: GBX 930.80 per share

- 2022-06: GBX 781.20 per share

- 2022-07: GBX 839.40 per share

- 2022-08: GBX 726.00 per share

- 2022-09: GBX 472.50 per share

- 2022-10: GBX 472.40 per share

- 2022-11: GBX 622.60 per share

- 2022-12: GBX 616.80 per share

- 2023-01: GBX 646.00 per share

- 2023-02: GBX 548.80 per share

- 2023-03: GBX 535.00 per share

- 2023-04: GBX 505.20 per share

- 2023-05: GBX 369.00 per share

- 2023-06: GBX 568.00 per share

- 2023-07: GBX 938.40 per share

- 2023-08: GBX 871.60 per share

- 2023-09: GBX 600.40 per share

- 2023-10: GBX 465.30 per share

- 2023-11: GBX 600.00 per share

- 2023-12: GBX 758.40 per share

- 2024-01: GBX 546.60 per share

- 2024-02: GBX 511.40 per share

- 2024-03: GBX 455.10 per share

- 2024-04: GBX 353.10 per share

- 2024-05: GBX 373.60 per share

- 2024-06: GBX 288.90 per share

- 2024-07: GBX 405.60 per share

- 2024-08: GBX 341.20 per share

- 2024-09: GBX 384.30 per share

- 2024-10: GBX 347.90 per share

- 2024-11: GBX 315.60 per share

- 2024-12: GBX 302.30 per share

- 2025-01: GBX 302.30 per share

- 2025-02: GBX 259.80 per share

- 2025-03: GBX 281.40 per share

- 2025-04: GBX 281.30 per share

- 2025-05: GBX 263.20 per share

- 2025-06: GBX 226.90 per share

- 2025-07: GBX 315.90 per share

- 2025-08: GBX 336.60 per share

- 2025-09: GBX 225.00 per share

- 2025-10: GBX 219.10 per share

- 2025-11: GBX 184.35 per share

- 2025-12: GBX 236.00 per share

- 2026-01: GBX 218.20 per share

- 2026-02: GBX 210.10 per share

- 2026-03: GBX 180.05 per share

- 2026-04: GBX 197.00 per share

- 2026-05: GBX 223.00 per share

- 2026-06: GBX 179.20 per share

- 2026-07: GBX 211.80 per share

- 2026-08: GBX 239.80 per share

- 2026-09: GBX 253.20 per share

- 2026-10: GBX 300.00 per share

## Annual estimated value (GBX per share)

- FY2016: low GBX 21.76 per share, central GBX 24.18 per share, high GBX 27.41 per share

- FY2017: low GBX 45.51 per share, central GBX 56.37 per share, high GBX 62.70 per share

- FY2018: low GBX 74.93 per share, central GBX 77.63 per share, high GBX 81.24 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original ESEF filing](https://filings.xbrl.org/213800LO8F61YB8MBC74/2025-11-30/ESEF/GB/0/213800LO8F61YB8MBC74-2025-11-30/reports/213800LO8F61YB8MBC74-2025-11-30-T01.xhtml); period 2025-11-30, filed 2026-03-10.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.